TSB haven't paid me interest

camperdown9

Hi

Over last year I managed to save £3000 using HSBC regular savings account. I want to keep this money rater than spend it and OK its not a lot but I would like to try and make some interest on it.

So I put £2000 into a TSB Class plus account and £1000 into a Nationwide Flex Plus.

The FlexPlus account paid up its 3% interest (massive £2.49!) on the last day of January. However the TSB account hasn't paid any interest.

The TSB account has been open for a while and I did a few month back get a letter saying that they wouldn't pay interest unless I switched to paperless statements. I have done this. However for a few months its pretty much been unused.

Before I call them later today and ask why, is there anything that I have missed. Do they stop paying interest after a period of inactivity?

Thanks

Alex

tizerbelle

Have you also switched to paperless correspondence (as well as statements) and paid in £500 a month?

Assuming you have met all the criteria, January's interest will be paid overnight tonight and be visible in your account tomorrow but be dated today.

camperdown9

tizerbelle wrote: »

Have you also switched to paperless correspondence (as well as statements) and paid in £500 a month?

Assuming you have met all the criteria, January's interest will be paid overnight tonight and be visible in your account tomorrow but be dated today.

As far as paperless goes - yes. As far as paying in £500 per month then no. I didn't pay anything in from June until January. Then on 2nd Jan I paid £2000 into the account.

tizerbelle

Well as I said, January's interest won't be paid until tonight. But you have to pay in at least £500/month going forward if you want to carry on getting interest - you can take it straight out again. They only pay interest when you meet all the criteria required to be eligible.

Have you really opened a FlexPlus to save? You do realise there's a monthly fee of £10 on that one? That will wipe out all the interest you earn and more. The FlexDirect pays 5% on upto £2,500 (if you feed in £1000/month) for a year and there's no fee.

B_G_B

camperdown9 wrote: »

As far as paperless goes - yes. As far as paying in £500 per month then no. I didn't pay anything in from June until January. Then on 2nd Jan I paid £2000 into the account.

The interest paying month runs from the end of the first working day of the month to the end of the first working day in the following month. Although it dosn't specifically state, I have always assumed that the funding (minimum £500) month is the same, although personally I keep funding away from the ends of the month, just to be sure.

Because the 2nd January was the first working day of the month, and you funded the account before the (approx) midnight cut off time, I would have expected you to have received 1 days interest at the end of 2nd January and nothing at midnight tonight if you haven’t funded since Jan 2nd.

I would fund the account again today to make sure.

http://www.tsb.co.uk/legal/current-accounts/plus-account/plus_terms_and_conditions.pdf

camperdown9

tizerbelle wrote: »

Have you really opened a FlexPlus to save? You do realise there's a monthly fee of £10 on that one? That will wipe out all the interest you earn and more. The FlexDirect pays 5% on upto £2,500 (if you feed in £1000/month) for a year and there's no fee.

No, I don't think I explained fully. I had a FlexDirect account for a year so I am not entitled to 5% offer. FlexPlus comes with mobile phone insurance (4 iPhones and a Blackberry in our house) and breakdown cover for Europe (have a second home in France). So for £10 is reasonable value for me.

Alex

camperdown9

B_G_B wrote: »

I would fund the account again today to make sure.

http://www.tsb.co.uk/legal/current-accounts/plus-account/plus_terms_and_conditions.pdf

OK just done that, if nothing shows tomorrow with regards to interest then I will call them.

Thanks

Alex

YorkshireBoy

camperdown9 wrote: »

OK just done that

Wasn't necessary. The TSB funding month is a calendar month, just like Lloyds, Halifax & BoS.

Anyway, at least you've met the requirements for February now.

Ed-1

YorkshireBoy wrote: »

Wasn't necessary. The TSB funding month is a calendar month, just like Lloyds, Halifax & BoS.

Anyway, at least you've met the requirements for February now.

I think you'll find it was necessary as someone I know found out last month. The funding month on the systems is set to the monthly billing period not calendar month even though it says that in the terms and conditions!

So if anyone has not funded a TSB Classic Plus with £500 since 2nd January they need to do it today otherwise the system will not credit interest tonight. Although they have a valid reason to claim it from TSB as the terms and conditions permit it to be paid if £500 was paid in on 1st/2nd January.

Ed-1

YorkshireBoy wrote: »

So you're saying the OP will get their interest for January overnight tonight, even though they didn't deposit in the calendar month of January?

Correct. Similarly, anyone whose Halifax Rewards direct debits pay out today and/or credit £750 today will receive their Reward payment even though they did not pay out in the calendar month of January.

YorkshireBoy

Ed-1 wrote: »

I think you'll find it was necessary

Are you saying the £2K deposited on 2nd Jan would not have qualified as a credit for that month?